Put a cradle in the house, tap on it and start growing your baby. It will take 24 hours. I'm assuming you've reached and completed the Two and a Half Sims quest.

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AliciaWS720 on Game Center: §418 mil town value, VIP 10, level 55. Started as a new game during the DIY update. Special thanks to all of you very creative people on this forum for inspiration in designing houses!